Less than a year after Google’s plans to acquire Wiz, executives have managed to close an agreement to buy for 32,000 million dollars the Israeli cybersecurity firm. After months of meetings, the outcome confirmed yesterday accelerated after the arrival of Donald Trump to the White House.
In July, the company improved its original offer of 23,000 million dollars to 32,000 million, making it One of the greatest technological operations in historyand drastically increased the termination commission to more than 3.2 billion dollars, according to sources familiar with the agreement collected by Reuters. But the real closure for Wiz and Google executives was the change in the White House that would have brought with it the perspective of a more favorable antitrust review under Trump’s mandate.
Although Alphabet carried out several attempts to get the cybersecurity over the months, His effort was more with the prospects of a republican government with Trump in front. Since then, the conversations between both parties began to be frequent and began to raise the scenario after a change in the administration and how it would affect the transaction. Among other issues, they shuffled how and what charges would affect in the antitrust office.
With the improved offer, the 32,000 million dollars, the firm that directs L succinity pichai faced its greatest purchase in history, hence the effort to try to tie all possible ends. The updated figure was already difficult to reject by Wiz and the termination commission also contributed sufficient guarantees, since it was also checked up, from 2,000 million to 3.2 billion. In fact, it represents 10% of the amount of the transaction, a higher percentage that is usually established in these cases. The more regulatory uncertainty there is, the more the selling part is shielded.
Alphabet has several cases open with justice for its monopoly position in the search business and on online advertising technology. This being its greatest acquisition of history, it could also be the subject of regulatory scrutiny. However, Trump’s appointments in competent agencies encouraged both parties to close the agreement. The president has chosen Andrew Ferguson for the Federal Commerce Commission (FTC) and Gail Slater in the Anti -Ponopoolio Branch of Justice, what the technological and Wiz saw with good eyes.
In January, the cybersecurity firm appointed Fazal Merchant as financial chief. He and the CEO, Assaf Rapport, have been two key people in the success of the operation, according to the sources of Reuters. Google’s cloud chief, Thomas Kurian, has also had a prominent role in closing the transaction.
In addition, the improved offer of the Californian house with the growth phase in which Wiz is located, with an annual increase in 70% income and a turnover of 700 million dollars, According to the same agency. Cybersecurity is an Israeli company founded in 2020, based in New York, USA. Among its investors are Blackstone, Sequoia or Salesforce Ventures.
The startup, which offers safety services in software and cloud computing, has giants such as Amazon, Microsoft and Google itself in its client portfolio. In fact, Wiz will become part of the Technology cloud, Google Cloud. “WIZ provides an easy -to -use security platform that connects to all large clouds and different codes and prevents security incidents,” says Alphabet’s statement on the transaction.
At a time when large technological ones can face regulatory pitfalls, the change of government in the US has been a decisive factor. The managers of both companies had recent the failure of the acquisition of Adobe to Figma, precisely by the regulator scrutiny. In any case, Wiz’s purchase must still receive the approval of the authorities.
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